5 Signs of a Good Investment Property

Not all investment properties are created equal. After analyzing hundreds of transactions in Pitt County, patterns emerge that separate successful investments from money pits. Here are five key indicators experienced investors look for.

1. Strong Rental Demand Fundamentals

The best rental investments are located where demand is structural, not temporary.

What to look for:

Proximity to major employers (ECU, Vidant Medical Center, local manufacturers)
Easy access to amenities renters value
Established rental market with comparable data available
Low vacancy rates in the immediate area

Red flags:

Areas dependent on a single employer
Neighborhoods with high turnover and declining rents
Properties that have been listed for rent multiple times

2. The Numbers Work at Current Market Rents

Hope is not a strategy. A good investment property should cash flow based on today’s market rents, not projections of future appreciation.

Calculate before buying:

Gross rent multiplier under 100 (purchase price / annual rent)
Cash-on-cash return meeting your minimum threshold
Realistic expense ratios (budget 35-45% of rent for expenses)
Debt service coverage of at least 1.25x

A property that only makes sense “if rents go up 20%” is speculation, not investment.

3. No Major Deferred Maintenance Surprises

Experienced investors get detailed inspections and budget for what they find.

Critical systems to assess:

Roof condition and remaining life
HVAC age and efficiency
Plumbing (especially in older homes with galvanized pipes)
Electrical panel capacity and wiring condition
Foundation and structural integrity

Pro tip: Pull the permit history. Properties with unpermitted work can create major headaches when selling or refinancing.

4. Location Within a Location

Even within a “good” neighborhood, micro-location matters tremendously.

Positive factors:

Corner lots or cul-de-sac positions
Not adjacent to commercial or industrial uses
Away from high-traffic roads
Good natural drainage and no flooding history

Check the data:

Flood zone status (FEMA maps)
Recent sales prices of immediate neighbors
Planned road projects that could increase traffic
Zoning of adjacent parcels

5. Clear Title and No Hidden Encumbrances

Due diligence isn’t complete until you’ve verified:

Clean title with no liens or judgments
No pending code violations
Property tax payments current
HOA status (if applicable) in good standing
No pending legal actions affecting the property

Bonus: Properties where the seller has owned for many years typically have cleaner title history than properties that have traded frequently.

Putting It Together

The best investment properties check all five boxes. That doesn’t mean you should pass on anything that’s not perfect—but understanding where a property falls short helps you price your offer appropriately and plan for what needs to be addressed.

Most importantly, every decision should be backed by data. Gut feelings have their place, but the investors who consistently succeed are the ones who verify their instincts with actual market information.

Need data for your next deal? Our Market Intelligence Report includes comps, permit activity, foreclosure filings, and developer tracking to help you make informed decisions.